South Korea’s Kospi Jumps 17% As AI-Linked Stocks Rebound Globally

South Korea’s benchmark Kospi index witnessed a historic rally on Friday, rising 17% in its biggest single-day percentage gain ever, as global technology stocks recovered and investors renewed their interest in artificial intelligence-linked companies.

The surge was driven largely by semiconductor giants, with SK Hynix and Samsung Electronics gaining more than 23% each.

Taiwan Semiconductor Manufacturing Co. also advanced 10%, making the three chipmakers among the biggest contributors to the MSCI Asia Pacific equities index.

The broader emerging market rally also strengthened, with the MSCI emerging market equities index climbing as much as 6.1%, marking its biggest increase in six years. The index ended the week with a gain of 1.8%. A corresponding emerging market currency index also rose by around 0.3%.

The gains across Asian markets followed a strong recovery in US technology shares, particularly semiconductor stocks, which recorded their largest jump in more than a year. Nasdaq 100 futures indicated further gains after the technology-heavy index ended a six-session losing streak.

Amazon.com shares surged 9.5% in after-hours trading after the company reported stronger-than-expected earnings. However, Apple shares declined more than 6% after supply-related challenges affected its sales outlook.

The rebound in semiconductor stocks provided relief to investors following a sharp selloff earlier in the week. The decline had been triggered by concerns that the massive investments being made in artificial intelligence infrastructure may not deliver sufficient returns in the near term.

Apart from technology stocks, investors are closely monitoring economic indicators, including the strength of the US dollar and rising crude oil prices. Oil prices have climbed more than 20% this month, raising concerns over potential inflationary pressures.

Brent crude prices edged lower on Friday as shipping activity through the Strait of Hormuz showed signs of improvement despite ongoing geopolitical tensions in the Middle East.

Markets will continue to track corporate earnings, inflation trends and developments in the global AI sector to determine whether the current technology-led recovery can continue.